Malaysia Oil and Gas Profile
Malaysia Oil and Gas News
Most Recent Updates
Most Recently Updated Pages
Prelude Floating LNG Terminal
Probably the most exciting project in the world of Oil & Gas. The platform will be the largest ship ever built
- Malaysia is the second largest oil and natural gas producer in Southeast Asia, the second largest exporter of liquefied natural gas globally, and is strategically located amid important routes for seaborne energy trade.
- According to the Oil & Gas Journal (OGJ), Malaysia held proven oil reserves of 4 billion barrels as of January 2013, the fifth-highest reserves in Asia-Pacific after China, India, Vietnam, and Indonesia. Nearly all of Malaysia's oil comes from offshore fields.
- According to the OGJ, Malaysia had 83 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2013, and it was the third largest natural gas reserves holder in the Asia-Pacific region.
- 1979 - The Tapis Oil Field came onstream
- 1983 - First cargo delivered from the Malaysia LNG plant
- 1998 - The Peninsular Gas Utilization (PGU) project was completed
- 2007 - The Kikeh Oil Field, the first deepwater development started production
- Energy policy in Malaysia is set and overseen by the Economic Planning Unit (EPU) and the Implementation and Coordination Unit (ICU), which report directly to the Prime Minister. Malaysia's national oil and gas company, Petroliam Nasional Berhad (Petronas), holds exclusive ownership rights to all oil and gas exploration and production projects in Malaysia, and is responsible for all licensing procedures.
- The company is directed by the Prime Minister, who also controls appointments to the company board. Petronas holds stakes in the majority of oil and gas blocks in Malaysia, and it is the single largest contributor to Malaysian government revenues, about 45 percent, by way of taxes and dividends.
- Under legislation enacted in 1985, Petronas is required to hold a 15-percent-minimum equity in production sharing contracts (PSC) with all foreign and private companies
- Malaysia is Southeast Asia's second largest oil producer behind Indonesia.
- Total oil production in 2012 was an estimated 643,000 barrels per day (bbl/d), slightly higher than 626,000 bbl/d in 2011. Nearly 80 percent of total liquids are crude oil, and the remainder consists of condensates, natural gas liquids, gas-to-liquids (GTL) fuel, biodiesel, and refinery processing gain.
- More than half of Malaysian oil production currently comes from the Tapis Oil Field in the offshore Malay basin. The country's oil production has experienced overall decline since peaking at 862,000 bbl/d in 2004 as a result of maturing fields, particularly larger fields in the shallow waters offshore Peninsular Malaysia.
- Some recent drilling efforts in the area such as Lundin Petroleum's Bertam Oil Field in the Penyu Basin are expected to add incremental will help offset production declines from mature fields. Lundin anticipates the Bertam field will yield 20,000 bbl/d by the second half of 2014.
- Although Malaysia's dry natural gas production has risen steadily over the past two decades, reaching 2.2 Tcf in 2011, growth slowed since 2007. Meanwhile domestic natural gas consumption has increased, reaching 1.1 Tcf in 2011, and accounted for about 50 percent of production. The power sector consumes about 74 percent of the Malaysia's natural gas market sales, and demand for power especially in Peninsular Malaysia is expected to increase.
- Rising domestic demand and LNG export contracts place pressure on the gas supply, and Malaysia is actively investing in reservoir development to meet these needs. There are several ongoing projects that will expand natural gas production in Malaysia over the near term.
- Exploration and development activities in Malaysia continue to focus on offshore Sarawak and Sabah.
- For further information, see Exploration and Production in Malaysia
- ExxonMobil’s predecessor Standard Oil began prospecting for oil in this region as far back as the early 1900s. Today Exxon have working interest in 4 Production Sharing Contracts with PETRONAS. Exxon operate over 40 offshore platforms in 17 fields in the South China Sea, off the East Coast of Peninsular Malaysia, which produce about a sixth of Malaysia's oil and condensate.
- Shell first set up operations in Sarawak in 1910. Shell upstream companies have interests in more than 10 production sharing contracts in offshore blocks in Sabah and Sarawak
- ConocoPhillips’ upstream involvement in Malaysia began in 2000 and presently consists of interests in three deepwater blocks off the eastern Malaysian state of Sabah
- Murphy has been active in Malaysia since 1999, and employs over 400 staff in-country. Murphy has majority interest and operates six separate production sharing contracts (PSCs), covering approximately 6.7 million gross acres
- Talisman holds a 41% operated interest in Block PM-3 CAA between Malaysia and Vietnam and associated production facilities. In addition, Talisman holds a 33% interest in Block 46-Cai Nuoc adjacent to PM-3 CAA and a 60% interest in each of Block PM-305 and Block PM-314. In Block PM-3 CAA, Talisman is progressing developments referred to as the ‘‘Southern Fields’’ and the ‘‘Northern Fields.’’
- JX Nippon Oil & Gas Exploration operates a number of gas fields.
- * Malaysia’s benchmark crude oil, Tapis Blend Crude Oil, is very light and sweet with an API gravity of 44° and sulfur content of 0.08 percent by weight.
- Kikeh Crude Oil is another export blend crude
- Malaysia has a relatively limited oil pipeline network and relies on tankers and trucks to distribute products onshore. Malaysia's main oil pipelines connect oil fields offshore Peninsular Malaysia to onshore storage and terminal facilities.
- The 124-mile Tapis pipeline runs from the Tapis oil field and terminates at the Kerteh plant in Terengganu, as does the 145-mile Jerneh condensate pipeline.
- The oil pipeline network for Sabah connects offshore oil fields with the onshore Labuan Crude Oil Terminal.
- Malaysia has one of the most extensive natural gas pipeline networks in Asia, totaling about 1,530 miles.
- The Peninsular Gas Utilization (PGU) project, completed in 1998, expanded the natural gas transmission infrastructure on Peninsular Malaysia. The PGU system spans more than 880 miles and has the capacity to transport 2 billion cubic feet per day (Bcf/d) of natural gas.
- Other gas pipelines run from offshore gas fields to gas processing facilities at Kertih. Also, a number of pipelines link Sarawak's offshore gas fields to the Bintulu LNG facility.
- Malaysia was the second largest global LNG exporter after Qatar in 2012. The country shipped over 1.1 Tcf/y of LNG and contributed 10 percent of LNG exports worldwide according to FACTS Global Energy. The LNG consumers are Japan (63 percent), South Korea (17 percent), Taiwan (12 percent), and China (8 percent), all holding medium- or long-term supply contracts with Malaysia.
- Malaysia also has sold LNG cargoes to Petronas LNG Limited, a trading company, which ships spot LNG cargoes to many locations around the world. Despite growing demand for natural gas at home, Petronas is keen to maintain its long-term export contracts as they currently capture a higher price than gas sold domestically where the gas prices are regulated and subsidized.
- The Bintulu LNG complex on Sarawak is the main hub for Malaysia's natural gas industry. Petronas owns majority interests in Bintulu's three LNG processing plants (Dua, Tiga, and Satu), which are supplied by the country's offshore natural gas fields.
- In order to monetise smaller gas assets, the Malaysia FLNG Terminal and Sabah FLNG Terminal are currently being constructed
- According to OGJ, Malaysia has nearly 539,000 barrels per day (bbl/d) of refining capacity at seven facilities. Malaysia invested heavily in refining activities during the last two decades and is now able to meet most of its demand for petroleum products domestically, after relying on refineries in Singapore for many years.
- Petronas is the dominant player in the downstream sector with 3 refineries, Kertih Refinery, Melaka I Refinery and Melaka II Refinery which is a joint venture with ConocoPhillips.
- Shell owns the Shell Port Dickson Refinery, but a second refinery, the Lutong Refinery has been closed down.
- The Esso Port Dickson Refinery was acquired by Petron in 2012
- Petronas & Conoco are expanding and upgrading the Melaka II Refinery
- As part of Malaysia's goal to compete with the oil refining and storage hub in Singapore, Petronas is also constructing a major new refinery and petrochemicals complex, the Pengerang Johor Refinery Project in Johor state at the southern tip of Peninsular Malaysia by the end of 2017
- There are a number of other greenfield refinery projects, the Kedah Refinery Project, Perak Refinery Project and Teluk Ramunia Johor Refinery Project. None of these have made significant progress
- Malaysia, EIA
page revision: 32, last edited: 28 Jul 2015 07:05